Why Monday.com Tanked 23% Today

Shares of Monday.com (NASDAQ: MNDY) were down 23% today as of 11:45 a.m. ET. The high-flying software stock has been unwinding in recent months, but this latest drop sends it below where it made its debut in public trading following the IPO in June 2021.

The big single-day drop can be chalked up to the fourth-quarter 2021 earnings report. Revenue of $95.5 million represented a 91% increase from a year ago, capping off a fantastic first year for Monday.com as a public company. Full-year sales were $308 million, also a 91% increase.

Given the torrid pace of growth the company is posting, why the feelings of impending doom among investors? It all has to do with interest rates. The Federal Reserve has indicated it will begin hiking its short-term benchmark rate starting in March to fight inflation, which has been the news weighing on growth stocks in general in recent months.

Source Fool.com